Company Number: 13126681

Analysis Date: 2025-07-20 11:25 UTC

1. Risk Rating: HIGH

Justification: The company shows persistent and significant negative net current assets (working capital deficits) over multiple years, indicating liquidity stress. Although net assets have improved recently, current liabilities still exceed current assets by a substantial margin. The absence of employees raises questions about operational capacity. Given these factors, solvency and liquidity risks are elevated.

2. Key Concerns:

• Consistently negative net current assets: The company had net current liabilities of £3,698 as of 31 January 2024, which although improved from prior years, still indicates potential short-term liquidity issues.
• Lack of employees: The reported average number of employees is zero, which may imply the company is not operationally active or reliant on contractors, raising questions on its sustainability.
• Minimal share capital (£1.00) and small asset base: The company has very limited equity and fixed assets, potentially restricting its ability to absorb losses or raise capital.

3. Positive Indicators:

• Improvement in net assets: Net assets increased from £798 in 2023 to £5,408 in 2024, suggesting some strengthening of the financial position.
• No overdue filings: The company is up to date with accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Active status with a single director maintaining the company suggests there is continuity in governance.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to assess urgency and risk of default.
• Clarify the operational model given zero employees reported—whether the business is subcontracting or inactive.
• Review cash flow statements if available to evaluate actual liquidity and operating cash generation.
• Confirm if any off-balance sheet liabilities or contingent risks exist.
• Assess director’s plans to address working capital deficits and improve operational stability.